Mortgage Rates Rise for the First Time in Two Months

Freddie Mac report indicates modest improvement in U.S. mortgage rates

Mortgage Rates Rise for the First Time in Two Months
March 7, 2016

For the first time in two months, the U.S. mortgage rate has increased. This improvement comes following a period of stability in the global market. Economic anxiety has stressed the market for weeks. Last Thursday, March 3, Freddie Mac reported that the average interest rate on a thirty-year fixed mortgage had increased from 3.62 percent to 3.64 percent, a very modest improvement but the first improvement since January. The interest rate’s benchmark, however, continues to stay below the 3.75 percent that the market saw last year.

The housing market has also changed in a number of other ways as the stock market began to recover from the lows it experienced at the beginning of 2016. When it closed on Friday, March 4, the market saw gains for the third week in a row. This comes after weeks of U.S. government bond prices shooting higher and higher while investors looked for safe bets. As the decline in prices improved the bond yields, mortgage rates increased.

The average interest rate on a fifteen-year fixed mortgage also improved by a very small amount, moving from 2.93 percent to 2.94 percent. This improvement seems negligible, but it marks the first increase in weeks. Five-year adjustable mortgage rates also increased from 2.79 percent to 2.84 percent.

It is important to note that while the global market does appear to have stabilized, market experts do not expect to see the Federal Reserve raise their short-term interest rate again. They did this once in December 2015, but it most likely will not occur in the immediate future.

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Nancy | 03.07.16 @ 18:00
That's a really small increase but I guess it all adds up.
Steffanie | 03.07.16 @ 18:01
It's nice to see an improvement. Hopefully that trend continues.
Erin | 03.07.16 @ 18:01
It looks like even though they have been raised, they are still historically low. This is good news for those that are in the market to buy a house. Thanks for the update.
Sarah | 03.07.16 @ 18:02
Well... that's unfortunate that it did go up but since it was such a small amount, it's not that huge I guess. I mean, sure, it IS huge overall but not end of the world stuff.
Carla Truett | 03.07.16 @ 18:02
It is still good to see the interest rate lower than a few years back. Improvements are always good. It is a great time to buy
Heather | 03.07.16 @ 18:03
Mortgage interest rates have been so low for a long period of time it's no surprise they are starting to increase. Thank goodness it's just a small increase to not give people heart attacks.
Kamie | 03.07.16 @ 18:03
It is great that it is showing the positive, but at the same time if you want to save the money, it can mean bad for saving. Though I am really glad to see that we are slowly dusting ourselves off and still going.
brittany.martinez530 | 03.07.16 @ 18:04
Well this is a good sign! I am always interested in watching the rates rise and fall. Def nice to see improvement.
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